Seamless Green China (Holdings) Limited Stock Market Press Releases and Company Profile

View in Other Languages Seamless Green (HKG:8150) Brings In Capital To Boost Financial Position and New Business Development 無縫綠色(HKG:8150)擬配售2億份非上市認股權證 无缝绿色(HKG:8150)拟配售2亿份非上市认股权证 
Seamless Green (HKG:8150) Brings In Capital To Boost Financial Position and New Business Development
Seamless Green (HKG:8150) Brings In Capital To Boost Financial Position and New Business Development

Hong Kong, Aug 13, 2009 AEST (ABN Newswire) - Seamless Green China (Holdings) Limited ("Seamless Green" or "the Company") (HKG:8150), an enterprise actively developing eco-road lighting system in the PRC, has signed a warrant placing agreement with independent third parties involving 200 million three-year non-listed warrants of total worth of HK$10 million. If the warrants are fully exercised, the Company will receive additional net proceeds of approximately HK$190 million, which it intends to use as capital expenditure, general working capital and to fund development of its eco-road lighting system business in the future.

Pursuant to the placing agreement, the issue price of the warrants is HK$0.05 per warrant. The subscription price is HK0.95 per new share, a premium of approximately 79.25% to the closing price of HK$0.53 per share as quoted on the Growth Enterprise Market of the Stock Exchange on 7 August 2009. Upon the exercise of the subscription rights attaching to the warrants in full, a maximum of 200,000,000 new shares will be issued and allotted, representing approximately 4.72% of the existing issued share capital of the Company or approximately 4.50% of the enlarged issued capital (assuming the Company did not issue other shares before the warrants are exercised in full).

Mr. Chan Chung Keung Jackon, Chairman and Executive Director of Seamless Green, said, "The Chinese government has been active in recent years in promoting the environmental protection industry. Heeding the trend, the Company promptly switched its focus on to environmental protection business in the country and invested in eco-road lighting system business that boasts strong growth potential. The placing of warrants will provide capital required to support the short-term and mid- to long-term development of the business, allowing us to capture upcoming opportunities in the eco-road lighting system market."

Currently, the majority of the street lamps using in the PRC are energy-consuming high-pressure sodium lamps, and in recent years, the PRC government has been putting a lot of emphasis on energy efficiency and has promulgated policies and rules to encourage and promote urban energy saving. The energy-efficient street-lamps supplied by Seamless Green can reduce energy consumption by around 40%, which can help to meet the demand resulting from the said government policies. So far, of the 48,000,000 high-pressure sodium lamps used in the PRC, less than 5% have been replaced by the energy-efficient lamps, meaning there is a huge potential demand for "green" street lamps in the market.

Mr. Chan continued, "Riding on continuous economic growth, urbanization and construction of roads and highways in the PRC, and coupled with the stepping up promotion of energy conservation all over the world and sustainable economic development, it will present opportunities to the Company in tapping the energy-efficient street-lamp market in the country. The company has secured several energy-efficient city road lighting reform engineering projects and has given the Company a solid foundation for developing the energy-efficient street-lamp business, and we expect to expand the business to 11 cities including Hubei, Jiangxi and Shanghai. Looking ahead, apart from using the proceeds from the warrant placement to strengthen our overall financial position, we will also use the fund raised to grow the energy-efficient street-lamp business so as to maximize returns to shareholders."

Contact

Strategic Financial Relations (China) Limited
Ms. Serine Li
Tel: 2864 4811
Email: serine.li@sprg.com.hk

Ms. Katie Kung
Tel: 2864 4830
katie.kung@sprg.com.hk

Ms. Arlene Wong
Tel: 2864 4899
arlene.wong@sprg.com.hk

Mr. Walter Chan
Tel: 2114 4954
walter.chan@sprg.com.hk


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